Two More Defendants Sentenced in National COVID-19 PPP Fraud Scheme

RALEIGH, N.C. — Two additional defendants were sentenced this week for their roles in a national COVID-19 fraud scheme involving Paycheck Protection Program (PPP) loans. Toni A. Smith, 46, of New Jersey, received a 15-month prison sentence, while Dontae Antonio Murphy, 40, of Charlotte, was sentenced to 12 months in prison. Together, they were ordered to pay hundreds of thousands of dollars in restitution to the Small Business Administration (SBA), including interest and processing fees.

Smith and Murphy obtained fraudulent PPP loans under the guise of operating janitorial and cleaning services companies. This sentencing brings the total number of defendants sentenced in this scheme to 22, with nine more awaiting sentencing in the Eastern District of North Carolina.

“This case is part of a broader effort to combat fraud against programs meant to support small businesses during the pandemic,” said U.S. Attorney Michael Easley. “We will continue working with the IRS to hold those who exploit these relief programs accountable.”

Smith and Murphy conspired with Edward Whitaker and Schunda Coleman, who facilitated fraudulent loan applications from their home in Texas. Whitaker and Coleman, who pled guilty earlier this year, created fake documents that inflated employee numbers and wages. The fraudulent loans were then used for personal gain, with fake payroll records submitted to the SBA for loan forgiveness.

“The PPP was intended to assist small businesses during the pandemic,” said IRS Criminal Investigation Special Agent in Charge Donald “Trey” Eakins. “We will aggressively pursue anyone who attempts to exploit these funds for personal benefit.”

The defendants are part of a larger group involved in this widespread PPP loan fraud, with additional sentences expected soon. The Paycheck Protection Program, established under the CARES Act, provided nearly $649 billion in forgivable loans to support small businesses during the COVID-19 pandemic.

Sentenced Defendants Include:

• Albert Eugene Miller, Jr.
• Jonathan Fleming
• Nekita Hooks
• Shakeerah Kaneisha Yvette Vinson
• Denise Coit Alston
• Terron Cortez Parker
• Monica Faye Barnes
• Dontrell Barnes
• Kami D. Woodard
• Isaac Lamont Dawson
• Irene Edwards
• Jackson Ndoyo
• Lenille Woodard
• Natosia Jerome Jenkins
• Teresa Ann McRae
• Delvin Dashavone Felder
• Shun Lamont Gibbs
• Karim Aziz Razzak
• Anthony S. Whitaker
• Darian Casteele Tyler

Defendants Awaiting Sentencing Include:

• Quentin Jackson
• Edward Whitaker
• Schunda Coleman
• Ayyub Abdur Rasheed
• Ronald L. Jones
• Everett M. McBride
• Hanif Abdul-Hakim
• James Elton Watson
• Shara Monique Wells

The IRS Criminal Investigation division continues to work alongside federal partners to investigate and prosecute PPP loan fraud.

Crop businessman giving contract to woman to signPhoto byAndrea Piacquadio